I was very pleased, however for folder support in Apple's new phone OS: You can organize your apps into folders by category by dragging and dropping them into each other. The iPhone will automatically assign a category name for them.

The iPhone also gets personalized wallpaper with OS 4, but that's another feature (like multi-tasking) that should have been there a long time ago.

I was disappointed that Apple only made a slight tweak to the notifications system. I find the current system a bit disruptive, and I don't like the fact that there's no place to save or store your notifications. Both Palm and Android have fairly unobstrusive notification systems, and both let you see all of your older notifications.

On the other hand, iPhone 4.0 will have a new service called local notifications, which don't rely on a third-party server. So if you have a TV Guide app, and you want to be reminded of when a show comes on, you can have it send you a notification.